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Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Summary of Share-Based Payment Award Stock Options Valuation Assumptions
The weighted average assumptions used in the Monte Carlo simulation model to calculate the fair value of the Company’s stock unit awards are outlined in the table below.
 
2014
 
2013
 
2012
Expected volatility of stock price
40%
 
43%
 
50%
Risk-free interest rate
0.83%
 
0.39%
 
0.30% - 0.42%
Valuation period
3 years
 
3 years
 
2½ - 3 years
Dividend yield
0%
 
0%
 
0%
Annual Activity of RSUs
Annual activity related to stock units and cash units, consisted of (in thousands of shares):
 
 
 Time-Based RSUs
 
Performance-Based and Market Based RSUs
 
Cash Unit Awards
 
 
Number of Shares
 
Weighted
Average
Grant Date
Fair Value
 
Number of Shares
 
Weighted
Average
Grant Date
Fair Value
 
Number of Units
 
Weighted
Average
Grant Date
Fair Value
Outstanding at January 1, 2014
1,308

 
$
17.92

 
2,043

 
$
13.79

 
267

 
$
14.90

 
Granted (a)
381

 
42.05

 
326

 
42.03

 
—

 
—

 
Vested (b)
(606
)
 
16.71

 
(438
)
 
10.91

 
—

 
—

 
Forfeited/expired
(85
)
 
24.83

 
(47
)
 
21.36

 
—

 
—

Outstanding at December 31, 2014 (c)
998

 
$
27.26

 
1,884

 
$
19.17

 
267

 
$
14.90

__________
(a) 
Reflects the maximum number of stock units assuming achievement of all performance-, market- and time-vesting criteria and does not include those for non-employee directors, which are discussed separately below. The weighted-average fair value of time-based RSUs, performance-based and market-based RSUs, and cash units granted in 2013 was $21.77, $20.04 and $18.04, respectively, and the weighted-average fair value of time-based RSUs, performance-based and market-based RSUs, and cash units granted in 2012 was $14.39, $12.66 and $12.65, respectively.
(b) 
The total fair value of RSUs vested during 2014, 2013 and 2012 was $15 million, $13 million and $16 million, respectively.
(c) 
The Company’s outstanding time-based RSUs, performance-based and market-based RSUs, and cash units had aggregate intrinsic value of $66 million, $125 million and $18 million, respectively. Aggregate unrecognized compensation expense related to time-based RSUs and performance-based and market-based RSUs amounted to $28 million and will be recognized over a weighted average vesting period of 0.6 years. The Company assumes that substantially all outstanding awards will vest over time.
Summary of Share Based Compensation Shares Authorized Under Stock Option Plans by Exercise Price Range
The annual stock option activity consisted of (in thousands of shares):
 
 
Number of Options
 
Weighted
Average
Exercise
Price
 
Aggregate Intrinsic Value (in millions)
 
Weighted
Average
Remaining Contractual Term (years)
Outstanding at January 1, 2014
979

 
$
2.82

 
$
37

 
5.2
 
Granted (a)
—

 
—

 
—

 
 
 
Exercised (b)
(131
)
 
2.16

 
6

 
 
 
Forfeited/expired
—

 
—

 
—

 
 
Outstanding at December 31, 2014 (c)
848

 
2.92

 
54

 
4.3
Exercisable at December 31, 2014
816

 
$
2.59

 
$
52

 
4.2
__________ 
(a) 
No stock options were granted during 2013 or 2012.
(b) 
Stock options exercised during 2013 and 2012 had intrinsic values of $23 million and $11 million, respectively, and the cash received from the exercise of options was insignificant in 2014, $3 million in 2013 and insignificant in 2012.
(c) 
The Company assumes that substantially all outstanding stock options will vest over time.